Mobile App Buyers Step Up Spending

A new ABI Research survey of smartphone owners found that 17 percent of them spent between at least $100, though less than $500, on mobile apps in 2008. The report called that level of spending especially significant, given that most mobile apps cost anywhere from 99 cents to around $20 or $25 at the top end these days.

The firm said that Apple’s App Store may be permanently altering the pricing landscape for mobile apps—and not necessarily for the better. “Apple is seen by some as hurting the market with its iPhone App Store,” said senior analyst Jeff Orr in the report. “It drives the price of content down to $1-2, using a model similar to its successful iTunes music store. If you exclude Apple from the mix, applications for other platforms cost about $7-25 each.”

The low pricing, while great for consumers, in the end hurts developers and can drive them away from writing for more than one platform. On the other hand, the App Store has driven up awareness of mobile apps and made it easy for many owners to buy and install them.